Refers to the process of converting money into capital. Investment can be divided into physical investment and securities investment. The former is to invest in enterprises with money and get certain profits through production and business activities. The latter is to buy stocks and corporate bonds issued by enterprises in currency and indirectly participate in the profit distribution of enterprises.
Funds have broad and narrow definitions. Fund in a broad sense is the general name of institutional investors, including trust and investment funds, unit trust funds, provident funds, insurance funds, retirement funds and funds of various foundations. Funds in the existing securities market, including closed-end funds and open-end funds, have the characteristics of income function and value-added potential. From the accounting point of view, capital is a narrow concept, which refers to funds with specific purposes and uses. Because the investors of government agencies and institutions do not require investment returns and investment recovery, but require funds to be used for designated purposes in accordance with the law or the wishes of the investors, funds are formed.
The funds we are talking about now usually refer to securities investment funds.
Securities investment fund is an indirect way of securities investment. Fund management companies concentrate investors' funds by issuing fund units, which are managed by fund custodians (that is, qualified banks) and managed and used by fund managers to invest in financial instruments such as stocks and bonds, and then * * * bear the investment risks and share the benefits.